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Holmes on Homes: Home Buying Nightmare Story
By Mike Holmes
Mike’s Advice / Buying & Selling Your Home
Monday, July 15th, 2024 @ 11:27am
Nightmare Home Buying Experience on Holmes on Homes
I’ve been a contractor for over 40 years, and I’ve seen A LOT of crazy stuff. The goal of my TV shows has always been to educate people. I wanted to show homeowners how to Make It Right and what it takes to maintain a house. Unfortunately, sometimes that means lessons learnt through a home nightmare story, like this one.
While filming Holmes on Homes, I met a wonderful lady named Pat who bought a house. Her daughters were really excited that they got to own a home. A few months later they get a knock on the door. It was a building inspector, and he told them that there was an outstanding work order on the house. She was not aware of this.
No Permits
Pat had unknowingly bought a house from someone who had done a LOT of work in the house without any permits. He actually put up a first and second story on the house without permits or drawings. Unbelievable. He essentially just built sections and placed them on top of each other.
In Ontario your local building authority issues building permits if you want to build something, renovate something or tear down something, or change the purpose of a building.
That previous homeowner then started a fight with the government over the permits. The homeowner was then sued by the government to make sure everything would be done to code and he had the architectural drawings in place. Now, because Pat became the new homeowner, she inherited that mess.
Speaking of messes, here’s something you probably don’t know. In the province of Ontario, before your real estate transaction is final, you can request a Search of Records on electrical permits from the Electrical Safety Authority. This will tell you if there have been any open notifications on the house since 2000. If there are open notifications, it means YOU, the new homeowner, are responsible to fix any electrical defects that may exist. You do NOT want to take that on!
In Ontario, anyone can do an ESA Record Search. This is a search for a specific address that indicates whether there are open/outstanding electrical notifications of work pertaining to that address. The required paperwork can be downloaded here. If there are issues, you must then request access to information.
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5 Electrical Safety Tips When Buying A New Home
Why You Need A Building Permit
Electrical Permits – Why It’s Important and What Happens When You Don’t
The Lawsuit
I actually met the two inspectors who had visited the house. We looked at a lot of things according to the plans and I learned a lot more about the gentleman who owned this home before Pat. He actually took on the government and failed.
He lost the house and went bankrupt. The bank took it over. Pat’s lawyer was aware of this but didn’t let her know. Pat sued the lawyer. Nine years later she won the lawsuit.
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Take It All Down
I brought an engineer to her house to start the process of making it right. The top floors were not added properly. Had to come down. Bit by bit, we took care of the house. Stairs, joists, columns – ALL WRONG.
If you are a fan of the Holmes classic shows, they are now available on Homeful TV’s free streaming platforms.
Fixing The Deck
The one thing I could fix quickly for her was the deck. She has grandkids, so I wanted to give them at least one part of the house they could safely enjoy. Even the deck was horribly done. No bolts or joist hangers, just a couple of nails. No strength at the bottom. The structure was incorrect.
I looked at the deck doors. There was nothing around the frames, so all the water was coming right in. The wood structure underneath was rotten.
Do you know what was supporting the upper deck? 4x4s on a 16 ft span just sitting on the ground. He did place tires under the deck, to cushion a fall if someone did fall down. I’m serious. We easily pulled the deck apart, using just our hands for the most part.
As for the rest of the house, the engineer took care of all the plans. We then started the process of fixing it and redid the permits.
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How To Avoid A Nightmare Home Buying Experience
#1 Always Get A Home Inspection
Make sure you get a proper, thorough home inspection when you are buying a house. The few hundred dollars you spend on a qualified, trained home inspector will save you a lot of money and headaches in the long run.
A Home Inspection can save you from a home buying a nightmare story.
I started my Mike Holmes Inspections program to give homeowners what they deserve – a home inspection they can trust.
Catch your favorite episodes of Holmes Inspections on Homeful TV.
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#2 Budget for the unexpected.
Do your research on what it takes to maintain a home based on the age of your home and the neighbourhood. Experts suggest you should budget anywhere from 1% to 5% of the purchase price per year. If you don’t spend it all then you can carry it over to the next year.
For example, if you spent $1,000,000.00 on your house, you should aim to save around $10,000.00 per year. This makes good sense because the longer you are in your home, the more likely you will need to start replacing those large ticket items, like a furnace, water heater, or roof!
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How Much Should You Budget for Home Renovations and Maintenance?
#3 Educate yourself on red flags to look out for
Look out for foundation cracks, drafty windows, and other visible signs as you walk around the house. Here’s an article on that.
A saggy ceiling can also be a sign of a leaky roof.
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#4 Ask Your Real Estate Agent questions
Work with your real estate agent to make sure the house you are investing in is safe. Were permits pulled for the renovation? What’s the house’s sales history? Is it a flip?
If you’re walking through a house and your realtor is telling you that the kitchen and basement were JUST done, I would be concerned. A renovation done right takes time, and it costs money.
#5 Check the Renovation History
You can check the renovation history of the property and ask for permits. If you don’t find any permits, it means the homeowners did not hire a professional for the job.
Buying a house is a stressful process, but you should know when to walk away. As I always say, plan it right, do it right, buy it right, and you’ll be alright!
READ MORE
19 Biggest Home Renovation Mistakes to Avoid
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